Exam 6: Forecasting Value: Market Research

The presence of real estate cycles presents a major challenge when forecasting real estate market parameters.If the market value of a residential developer's project exceeds its construction costs,an increase in the supply of units will occur.As the market becomes oversupplied,we would expect which of the following to occur?

Suppose a developer is interested in building a new residential subdivision.Through his market research,the developer has determined that the target market segment potential in year 1 consists of 160 households.If the developer projects that he will be able to sell 24 homes in the first year,what is his assumed capture rate?

A planned unit development (PUD)is a residential development that differs from traditional residential subdivisions in all of the following ways EXCEPT:

A new residential development will face competition from other new developments,other builders,and sales of existing homes.To determine if demand in that market segment will be sufficient to justify proceeding with the project,a developer would be most interested in estimating a:

Development of subdivisions,apartments,offices,or other commercial structures can have a lead time of two years or more.In general,the longer the construction lead time:

In constructing a market-defining "story," it is helpful to answer a series of fundamental questions around which analysis can be built.Which of the following questions is designed to identify the target market?

Suppose that you were interested in building a luxury apartment complex in your hometown.In your analysis of local demographics,you discover that the target market makes up only 5% (core market share)of the households that currently rent (or would be interested in renting)in this town.If market experts believe that a total of 5,000 apartment units will be rented in your entire hometown within the next year,what is the projected number of units the developer could expect to lease in year 1 if he is able to capture 20% of the market potential?

A tool used by real estate analysts to relate a consumer's activities,interests,opinions,and values to a consumer's demographics is referred to as: